Agencies | New Delhi:
Petrol and diesel prices were increased by ₹3 per litre on Friday after state-owned oil marketing companies ended a nearly four-year hiatus in fuel rate revisions amid mounting pressure from soaring global crude oil prices.
With the latest revision, petrol in the national capital now costs ₹97.77 per litre, up from ₹94.77, while diesel prices have risen to ₹90.67 per litre from the earlier ₹87.67, according to industry sources.
The hike comes against the backdrop of a sharp surge in international energy prices following the ongoing conflict in West Asia, which has significantly increased the import cost of crude oil for India.
Sources said state-owned oil companies — Indian Oil Corporation (IOC), Bharat Petroleum Corporation Limited (BPCL), and Hindustan Petroleum Corporation Limited (HPCL) — had absorbed the rising input costs for nearly 11 weeks despite mounting financial stress. However, sustaining operations without a price revision had become increasingly difficult.
Officials indicated that the current increase represents only a fraction of the actual hike required to fully offset the steep rise in global oil prices.
Fuel prices had largely remained frozen since April 2022, when oil marketing companies suspended daily rate revisions to shield consumers from volatility caused by the Russia-Ukraine conflict. The only exception came in March 2024, when petrol and diesel prices were reduced by ₹2 per litre ahead of the Lok Sabha elections.
During the first half of the 2022–23 financial year, public sector oil firms incurred massive losses due to the prolonged price freeze, although part of those losses were later recovered as crude prices softened in international markets.
However, the renewed geopolitical instability in West Asia has once again pushed crude oil prices sharply upward. India’s crude basket, which averaged around USD 69 per barrel in February before tensions escalated in the region, has now surged to nearly USD 113–114 per barrel in recent months.
Industry experts warn that if global oil prices remain elevated for an extended period, further pressure on domestic fuel prices cannot be ruled out, potentially impacting inflation, transportation costs and overall economic activity.
